How To Buy Tickets – Know Your Ticket Buying Enemies
Website design By BotEap.comHow to buy tickets… Know your seller
Website design By BotEap.comYou’ve probably heard of Sun Tzu’s (the famous Chinese warrior) instructions to his soldiers to “know your enemy” before going into battle.
Website design By BotEap.comWell, the same goes for buying notes.
Website design By BotEap.com“Know your seller” should be the mantra for every note buyer (and stockbroker!).
Website design By BotEap.comBecause?
Website design By BotEap.comBecause if you don’t “know” your salesperson, you may be entering into a negotiation with them with no idea of their key negotiating points.
Website design By BotEap.comAn example of how to buy notes, my recent offer
Website design By BotEap.comA bank has a first mortgage on a single-family home in Salt Lake City that it wants to sell.
Website design By BotEap.comThe borrower has not paid the note in more than 120 days, and the note is more than 2 months past due, so the entire loan could be considered past due.
Website design By BotEap.comThe bank has not served the borrower with a notice of foreclosure.
Website design By BotEap.comAnd they’ve called you to find out if you want to buy your delinquent note and mortgage.
Website design By BotEap.comI looked at this loan first from a price point of view: how much could you offer for it.
Website design By BotEap.comWe obtained a title report and BPO and discussed compensation provided to us by a local real estate agent.
Website design By BotEap.comAnd we present our offer.
Website design By BotEap.comMy representative at the bank hinted that I would need the approval of a senior personnel committee at the bank.
Website design By BotEap.comBut she was very cautious in answering any of my questions about where I needed to be in the prices.
to sell, and what was the status of the borrower. Website design By BotEap.comI got a little suspicious and tried to probe for more information, but she immediately fell silent and said, “I am not at liberty to say more about our borrower.” Something was going on in this note purchase agreement. Website design By BotEap.comIt was strange that the bank representative would react that way; in fact, it was the first time he had seen that kind of response to an individual loan before. Website design By BotEap.comHow to buy tickets: tips for talking to the banker Website design By BotEap.comSo I called her back and tried some exploratory language on her. Website design By BotEap.com“Would it be safe to say that the bank has a unique relationship with this borrower?” I asked her? Website design By BotEap.com“Absolutely,” she replied immediately. Website design By BotEap.comI was curious: what was going on here in this delinquent mortgage deal? Website design By BotEap.comSo I kept on fishing, understanding full well that she couldn’t reveal any information to me, but that she
he did not object to my insisting on more information, as long as he could answer with a yes or no. Website design By BotEap.com“And there’s a reason the bank doesn’t foreclose in this case, right?” I asked. Website design By BotEap.com“Yes,” she answered simply. Website design By BotEap.com“And you probably don’t have the freedom to tell me, but this sounds like it’s going to be a tough relationship for him.
bank to foreclose, is that correct?” Website design By BotEap.com“Absolutely,” she replied again. “I can’t tell you anything more than that.” Website design By BotEap.com“One last question,” I asked. “Is it safe to assume that the bank may be more open to an offer for this loan
which clarifies what exit strategy we will pursue with the borrower rather than an actual purchase price
for the delinquent note?” Website design By BotEap.com“Yes,” he answered briefly again. “That would be fine”. Website design By BotEap.comSo what was going on in this note deal? Website design By BotEap.comWell, what I learned in two more phone calls with the woman I was doing business with at the bank was that the borrower was very well connected in Salt Lake City political circles, and her ex-husband was a close friend of the bank president. Website design By BotEap.comIt turned out that executing it could create a political uproar for the bank. Therefore, the bank was exploring discreet options to get rid of its delinquent loan, namely through a sale of notes to an outside investor. Website design By BotEap.comThe lesson to be learned from this example of How to Buy Tickets Website design By BotEap.comIf you don’t take the time to research WHY the seller is looking to sell a loan and the circumstances surrounding it
the sale, you may miss out on the seller’s key negotiating points in a transaction entirely. Website design By BotEap.comIn this case, it was not the price. It was what we planned to do to settle the promissory note with the borrower. The price was much less of an issue. Website design By BotEap.comYour How to Buy Notes Action Items of this: Website design By BotEap.com1) Always try to understand WHY a bank wants to sell you a note or group of notes. Website design By BotEap.com2) Try to find out what are the key negotiating points for the bank to sell you this default Website design By BotEap.commortgage. Usually it is one or more of the following: Website design By BotEap.comA.Price Website design By BotEap.comb. Speed with which you can close Website design By BotEap.comagainst Your ability to close (in other words, the bank cares more about whether you can close than the price the Buyer is offering for the discounted note) Website design By BotEap.comd. Your note purchase exit strategies (in other words, the bank can determine whether or not to accept an offer based on what type of buyer you are—are you a no-modification foreclosure transaction, for example?) Website design By BotEap.comSo keep all of this in mind the next time you talk to a bank about buying tickets. Website design By BotEap.comA ticket-buying warrior will make you so much better! Website design By BotEap.comTalk soon, Website design By BotEap.comDean
to sell, and what was the status of the borrower. Website design By BotEap.comI got a little suspicious and tried to probe for more information, but she immediately fell silent and said, “I am not at liberty to say more about our borrower.” Something was going on in this note purchase agreement. Website design By BotEap.comIt was strange that the bank representative would react that way; in fact, it was the first time he had seen that kind of response to an individual loan before. Website design By BotEap.comHow to buy tickets: tips for talking to the banker Website design By BotEap.comSo I called her back and tried some exploratory language on her. Website design By BotEap.com“Would it be safe to say that the bank has a unique relationship with this borrower?” I asked her? Website design By BotEap.com“Absolutely,” she replied immediately. Website design By BotEap.comI was curious: what was going on here in this delinquent mortgage deal? Website design By BotEap.comSo I kept on fishing, understanding full well that she couldn’t reveal any information to me, but that she
he did not object to my insisting on more information, as long as he could answer with a yes or no. Website design By BotEap.com“And there’s a reason the bank doesn’t foreclose in this case, right?” I asked. Website design By BotEap.com“Yes,” she answered simply. Website design By BotEap.com“And you probably don’t have the freedom to tell me, but this sounds like it’s going to be a tough relationship for him.
bank to foreclose, is that correct?” Website design By BotEap.com“Absolutely,” she replied again. “I can’t tell you anything more than that.” Website design By BotEap.com“One last question,” I asked. “Is it safe to assume that the bank may be more open to an offer for this loan
which clarifies what exit strategy we will pursue with the borrower rather than an actual purchase price
for the delinquent note?” Website design By BotEap.com“Yes,” he answered briefly again. “That would be fine”. Website design By BotEap.comSo what was going on in this note deal? Website design By BotEap.comWell, what I learned in two more phone calls with the woman I was doing business with at the bank was that the borrower was very well connected in Salt Lake City political circles, and her ex-husband was a close friend of the bank president. Website design By BotEap.comIt turned out that executing it could create a political uproar for the bank. Therefore, the bank was exploring discreet options to get rid of its delinquent loan, namely through a sale of notes to an outside investor. Website design By BotEap.comThe lesson to be learned from this example of How to Buy Tickets Website design By BotEap.comIf you don’t take the time to research WHY the seller is looking to sell a loan and the circumstances surrounding it
the sale, you may miss out on the seller’s key negotiating points in a transaction entirely. Website design By BotEap.comIn this case, it was not the price. It was what we planned to do to settle the promissory note with the borrower. The price was much less of an issue. Website design By BotEap.comYour How to Buy Notes Action Items of this: Website design By BotEap.com1) Always try to understand WHY a bank wants to sell you a note or group of notes. Website design By BotEap.com2) Try to find out what are the key negotiating points for the bank to sell you this default Website design By BotEap.commortgage. Usually it is one or more of the following: Website design By BotEap.comA.Price Website design By BotEap.comb. Speed with which you can close Website design By BotEap.comagainst Your ability to close (in other words, the bank cares more about whether you can close than the price the Buyer is offering for the discounted note) Website design By BotEap.comd. Your note purchase exit strategies (in other words, the bank can determine whether or not to accept an offer based on what type of buyer you are—are you a no-modification foreclosure transaction, for example?) Website design By BotEap.comSo keep all of this in mind the next time you talk to a bank about buying tickets. Website design By BotEap.comA ticket-buying warrior will make you so much better! Website design By BotEap.comTalk soon, Website design By BotEap.comDean